CRM Live prices released or, Another round of Microsoft vs. Salesforce

Of course, one bit of news dominated CRM-related blogosphere areas and media outlets: Today, it’s all about the Microsoft CRM Live prices announced at the Worldwide Partner Conference in excellent Denver, Colo.

(Actually, the conference is producing a steady squall of news items – as these events always do – which will be reported upon in an upcoming entry here at CRMchump. However, i can inform y’all now that all bits and bites are paling in comparison at the moment.)

In short, as Information Week describes it, CRM Live will “begin its life partially by attacking Salesforce and RightNow on price,” i.e. numbers that are – so claims Microsoft – half the industry average for similar product.

The Enterprise edition of the solution will be $59 per user per month and Professional will be listed in 2008 at $39 per user per month. CRM Live will be employing a code-based currently known as Titan. Titan introduces Microsoft product on an advanced multi-tenant architecture, using a single code base to support on-premise deployments and software-as-a-service deployments through hosting partners and through the – you guessed it – Microsoft Dynamics Live CRM service. Titan promises “a smooth upgrade path for existing on-premise and SaaS customers.” We’re still no closer to a release date for CRM Live or Titan, however, with word at the convention saying “later this year.” We do know that the early-adoption program begins in the autumn and will be based at Microsoft’s Virginia data center.

Naturally, as outlets are buying Microsoft’s strategy as a direct attack on Salesforce.com part and parcel, it wasn’t to be long before Salesforce CEO Marc Benioff threw in his 2K. In a well-quoted remark designed for the sound bite hall of fame, the pithy exec said, “These ‘new’ prices are their market prices today – there is no difference. When you have an inferior product you have to have an inferior price. That is why Zune is priced below iPod. And why Windows CE is priced below BlackBerry.

And why Microsoft CRM is priced below Salesforce.com.” Mary Hayes Weier at Information Week points out an excellent counter-argument to Benioff. As Benioff points out that Microsoft Dynamics was listed below Salesforce and Oracle/Siebel in Gartner’s 2007 Magic Quadrant analysis, Weier returns that “Gartner also notes that Salesforce.com’s premium price could be problem … [Salesforce’s weaknesses] include high costs ranging between $125 and $195 per user per month…”